Short Term VS Long Term Rentals - The BasicsNovember 28, 2018
Short term private rentals have become popular over the last few years, with sites such as Airbnb and Home Away. And with good reason. Being able to rent out a house or condo at a daily hotel rate seems lucrative. And with success stories circulating out there, more people have jumped on the bandwagon. So, how does this type of rental venture compare with simply leasing your house for the long term, such as one year or longer?
Long term rentals, such as leases for 12 months or longer, have been a popular route for many years and sought by many homeowners due to the stability of having a constant tenant for a longer period of time.
Short term rentals have come under scrutiny this past year. Recently, the Clark County Commission took steps to try and ban these short term rentals. So, of course, that would be one issue to contend with if you've thought about going that route. But why did the discussion about banning short term rentals even start? Simply put, the issues that came with them. The constant traffic in and out of a house in a residential neighborhood as guests came and left along with excessive noise levels.
Additionally, many owners have realized that even though the per day rental rate is lucrative, additional vacancy periods, maintenance and upkeep reduce the net income. Owner involvement is also significant to ensure the property is ready for each new guest.
On the other hand, with a long term rental, while the daily rate may be less, the income is constant month after month and the turnover factor is significantly reduced, reducing the cost of maintenance and repairs. Longer term rentals typically have an in depth screening for potential tenants as well, in an effort to minimize the risk of unpaid rent or damages.
While each property owner must make their own decision, knowing what is involved in renting your property - whether for the short or long term - will allow you to make the best decision possible.
For professional property management, call Nicklin Property Management at 702-903-HOME or email Michelle Williams for a free rent estimate and proposal at firstname.lastname@example.org.
The difference between condo and apartment rents - November 17, 2018
As you drive around Las Vegas, its hard to miss all of the new apartment construction going on. Its also hard to miss the asking apartment rents! Over the last 5 years, apartments have seen significant rent increases, with many tenants paying over $1000 / month for an average apartment. More commonly, especially in newer apartment complexes that offer a relaxing pool, gym and other hotel style amenities, rents can start closer to the $1500 mark.
Many condo unit owners are excited to see this jump in rent prices, seeing it as an opportunity to capitalize on their investments. However, after doing some research, many realize that their condo, though in a gated community with a pool, gym and well maintained grounds, doesn't quite fetch the same amount of rent. Rather, they might see their property leasing for as much as 25% less. So what makes the difference?
There's a couple significant ones. First, as a homeowner, when leasing your property, you are typically requiring at least a one month security deposit. This is designed to protect you in cases of lost rent or damages. On the other hand, many apartment communities offer incentives - either waving the deposit, making it minimal or offering a bond through a 3rd party. The move in process becomes much easier and attractive.
Secondly, apartment communities typically have on site maintenance. Whatever issue there might be inside of an apartment can be addressed right away, typically at no cost to the tenant, even changing air filters on their behalf. On the other hand, when you rent a condo, there is usually a measure of responsibility placed on a tenant for completing basic repairs.
Those two incentives allow apartment communities to charge a higher rent. And it works, based on the fact that apartment occupancy is high right now in the valley. There is encouragement, though, for condo owners: rents have been going up consistently. Over the last 5 years, rents, on average, have appreciated 15-25%, putting more money in many owners pockets.
Las Vegas Market Cooling Off - September, 2018
September 2018 - As summer bids farewell, the Las Vegas market is seeing a cooling trend after months of steady appreciation at one of the fastest rates in the country. This is in line with national trends. Inventory for resale homes has increased and the rush of buyers has diminished some. In addition, with school starting, interest rates rising and the seasonal slowdown beginning, the market is starting to level off some. A recent report by the Greater Las Vegas Association of Realtors still showed average price appreciation during the month of August, with a single family home appreciating from an average sales price of $290,000 in July to $295,000 in August. As we head into fall and winter, we can expect inventory to be slightly higher and homes remaining on the sales market longer. Rental properties have likewise seen steady appreciation this summer, with high demand and limited inventory. Average sized homes specifically have seen the most considerable increases, being the most in demand due to price point and size preference. As the season changes, though, we can expect a more level market.
Increases in the local market are being felt by investors who are now eyeing multi family properties to achieve a greater return as well as properties in need of significant repairs and maintenance, though these are in more limited availability. Older properties that perhaps were overlooked are now being considered more and as a result, seeing price appreciation.
The Las Vegas economy has thrived in recent years and the drive to invest, manufacture and diversify the economy is playing a role in property appreciation.
What Makes a Good Property Manager? - Aug 07, 2018
Choosing the right manager for your property can be a daunting task. So, what qualities make a good property manager? Being in the industry for over 30 years has shown us what property owners and investors are looking for and how to deliver on expectations.
One of the highest priorities, if not the highest, for the vast majority of rental property owners is communication. Owners want to know what is happening with their property. And with good reason! A considerable amount of money has been invested into a property and an eagerness to see how the property is doing is anticipated. From finding a tenant to updates on costly repairs, owners want to be involved in the approval and progress of these various issues. Though some have no debt against their properties, many do. Being informed helps them budget for the following month and plan accordingly. Even if an update is not available, letting an owner know that no update is available is an update in itself.
Property owners want a property manager who is knowledgeable in the field, knows the business well and legal procedures. Owners are looking for guidance during difficult circumstances, non payment of rent and handling of maintenance repairs. Being familiar with what the law states enables a property manager to be effective in addressing these issues. Knowing how insurance claims work, home warranties and HOA's is just as important. Really, understanding the business is important.
Owners want efficiency, both with the processes employed to costs incurred. Most rental property owners want their houses rented in a timely fashion, maintenance issues handled quickly and efficiently, utilizing well priced vendors. Owners want their properties inspected when promised. Having the knowledge, communication skills and resources enables a property manager to be efficient in all areas, with few delays.
Yes, property managers must wear many hats to be successful. And they must wear those hats well.
Rent Affordability in Las Vegas - Mar 01, 2018
March 2018 - As the Las Vegas real estate market continues to make national news as one of the fastest appreciating markets in the country, it is noteworthy to discuss residential rental rates and what the future holds for landlords and tenants alike.
As of February 28, only 2031 homes were active and available on the Multiple Listing Service for all areas of Las Vegas, Henderson and North Las Vegas. This figure includes all different types of residential dwellings, including condominiums and town homes. This figure shows the limited availability of rental properties throughout the Las Vegas valley, creating a competitive market for tenants. This, in turn, is prompting landlords to raise rents. By how much?
Of the total amount of properties available, only 300 are priced at $1000 / month or less. The vast majority are condominiums. This figure in itself shows the very limited supply of lower priced properties which is causing affordability issues for many. 669 properties are priced between $1001 - $1500 / month. The remaining properties are priced over $1500 / month.
This shift over the last 3 years specifically has caught many renters by surprise. Landlords are raising rents with each lease renewal and available rentals have seen an average 15% appreciation over the last 2 years. Some areas of the valley have seen even higher appreciation rates.
Affordability is certainly on the mind of many. And it doesn't seem the issue will go away. Both resale values and rental rates are expected to increase over the course of this year, with resale values appreciating at one of the fastest rates in the country. How this topic will be addressed is yet to be seen. One thing is certain: the affordable real estate market of 7 years ago is gone.
Las Vegas Housing Market On Continued Upward Trend - Jan 09, 2018
January 2018 - As 2017 came to a close, it was apparent that the local housing market was in demand, yet, not much inventory was available. This led to price appreciation and competition with resale homes and new homes seeing high demand and higher pricing. The average resale home sold for nearly $270,000 on average and new homes closer to $370,000. Rents have been rising consistently as well, with the highest appreciation seen in smaller homes, up to 2000 square feet. Most have averaged close to $1400 per month.
The projection for 2018? Analysts predict a continued upward trend. While resale inventory may increase throughout this year, demand is still strong. The same applies to rental homes. Forecasts are showing that the Las Vegas market will show the strongest appreciation in the country throughout the year. This growth is being fueled by a number of factors, such as strong job growth, educational opportunities and a still lower cost of living compared to other western cities. As a result, Nevada has been one of the most popular states to relocate to during 2017 from other parts of the country. This has certainly been seen in the Las Vegas area. Population growth has fueled infrastructure improvements, mass transit discussions and a number of large projects in both the commercial and industrial sector. It has also led to thousands of new homes being built year over year along with multi family projects popping up across the valley.
As the economy expands, we can expect positive growth throughout the year.
Las Vegas attracting sports teams from around the country - Nov 07, 2017
November 2017 - Seemingly overnight, Las Vegas has become a destination for professional sports. While exhibition and pre-season games have been played in Las Vegas in numerous venues by professional and international teams, Las Vegas has lacked its very own professional teams - until recently. True, Triple A baseball has been in the valley for a few decades and even an international hockey league team started in the early 90's, playing through 1999 before being dissolved. As a matter of fact, the valleys triple A baseball team, the Las Vegas 51's, will be soon playing at a new baseball field that is to be built in Summerlin, showing the expected long term commitment to the valley and support for the sport.
Numerous factors affected the success and draw of professional teams to the Las Vegas valley. However, in recent years, more attention has been placed on Las Vegas as a professional sports team city. The support has increased significantly and money put into attracting teams has grown.
It started with the NHL and forming a new expansion team, the Vegas Golden Knights, now in the midst of their very first season, playing at the new T Mobile Arena. Shortly thereafter, the Oakland Raiders expressed interest to move to Las Vegas. After much debate and approval for a state of the art NFL stadium, the Raiders were granted the move and expected to begin play in Las Vegas in 2020, after the completion of their 2 billion dollar stadium. Both the NHL and NFL being in Las Vegas has dominated the news. In the course of the last year, additional sports teams are coming to Las Vegas. A new soccer team, known as the Las Vegas Lights FC, which will be part of the United Soccer League, will be unveiling a new expansion team in 2018 and playing at Cashman Field. Finally, the WNBA announced recently that the San Antonio Stars will be relocating to Las Vegas, beginning play in the 2018 season at the Mandalay Bay Events Center.
All of these developments recently signify the high interest in having professional sports as a major attraction in Las Vegas. With these developments, many have begun to wonder what other professional sports teams may be considering relocation or what expansion teams may be formed in the future.
Home Warranties - The Pros and Cons - Aug 23, 2017
August 2017 - When purchasing a property, many buyers request a home warranty. They are fearful of the unexpected repairs that may come up as soon as they become owners, especially on high ticket items such as an air conditioning unit. Their concerns are valid. And a home warranty may very well prove useful when that dishwasher suddenly leaks all over the kitchen floor or there's no cool air coming out of the vents when the thermostat says it's cooling. However, there are pro's and con's as with everything when deciding to purchase a home warranty or extend one.
The pros of a home warranty are supposed to be to offset the full cost of a non-working or malfunctioning item inside the house, most commonly appliances, air conditioning and heating units and basic plumbing and electrical items inside the house. Pool and spa pumps and motors may also be added under covered items. The homeowner pays a yearly premium and a deductible per incident and expects most items to be covered within those costs. While a good portion of repairs are covered, many also come with a premium, bringing us to the cons.
Depending on the home warranty company, some will have added costs for air conditioning repairs and appliance parts, such adding freon, changing a compressor or replacing a hot water heater. Some may not cover certain parts at all. A poor repair by a prior vendor may also result in the home warranty not covering the expenses of a specific repair. This leaves many homeowner’s frazzled as they expected those more expensive repairs to be covered, after all, that is why they purchased a home warranty. Additionally, home warranties are bound by different time frames for repairs, allowing for extended periods of time for habitability issues to be remedied. This can pose an inconvenience to a homeowner and infringe on landlord / tenant laws. It is thus important to read the fine print of the home warranty contract to see exactly what will be covered, what won't be and what will come at an additional cost.
Rental Market Update - Las Vegas and Surrounding Area - Jul 25, 2017
July 2017 - Its no secret that the Las Vegas sales market has seen positive month over month gains and a limited supply of available homes, putting buyers in a frenzy. As the population of the Las Vegas area grows yet supply of available homes remains limited, potential buyers are forced to rent. How is the rental market fairing?
Nicklin tracks the general rental market to see fluctuations - both our inventory of some 1300 properties and the general MLS market.
Here is the trend seen this year leading up to now:
~ Rental properties have been appreciating steadily - at a modest rate. Inventory is rather limited with approximately 2000 actively available condos, town homes and single family homes through the Las Vegas, Henderson, North Las Vegas and Boulder City area, including Summerlin and Green Valley.
~ Properties priced under $1000 per month are limited to approximately 300, the vast majority being apartments and condos.
~ The next tier of properties priced up to $1500 per month are limited to 750 throughout the valley. Homes priced at $1500 and above make up half of the available inventory available.
The average property, between 1300 sqft - 1800 sqft is currently priced between $1200 - $1500 / month on average, though a third of those are priced at over $1500.
While we may see some appreciation through the third quarter of 2017, as the year ends, we can expect the market to stabilize through the beginning of 2018.
Nicklin Continues to Dominate in the Property Management Industry - Jun 19, 2017
June 2017 - Nicklin, one of Nevada’s largest property management firms, continues to impress investors with low vacancy periods, quick rental turnarounds and high tenant retention. In 2016, some 100 new clients decided to have to Nicklin oversee nearly 120 new properties due to their success in the rental market. For over 30 years, Nicklin has been managing residential properties throughout the Las Vegas area, including Henderson, North Las Vegas, Boulder City, Summerlin, Green Valley and everything in between. Nicklin has been awarded the “Honorary Alumni” award by the Greater Las Vegas Association of Realtors due to the extensive years in business and dedication to professionalism. Nicklin continues to uphold a high level of service and determines to be the leader in the property management industry.
New business and the Las Vegas real estate market - May 25, 2017
May 2017 - It seems that every week we hear about a new development within the Las Vegas area. As a matter of fact, billions of dollars in residential / commercial and industrial development is either in the planning or construction phase. How will this affect the local economy?
To start, the residential market is currently experiencing a shortage of homes. Resale homes are not coming on the market in volumes as they used to and builders are not building nearly as many homes as during the pre-recession era. Yet, new residents to Las Vegas and new buyers looking to get their hands on a piece of real estate has been going up. This has been driving prices up as competition for homes as increased. Brand new homes are averaging $325,000 and resale homes are currently at around $250,000. As inventory continues to be slim, we can expect prices to increase month over month. What is contributing to the demand?
The Las Vegas economy in general has seen positive strides for a few years now - since 2012. The unemployment rate has steadily gone down and investors began investing into various projects throughout the Las Vegas area. Granted, the beginning of the improvement was slow. However, in the last 3 years, things shifted and the influx of investors increased considerably.
In addition, large corporations began to view Las Vegas as a viable place to place roots. Quickly, new industrial developments began to take shape, vacancies in commercial centers began to disappear and the demand for housing once again grew. As a matter of fact, new developments in the commercial market quickly took shape. This development has led to other positive aspects for the city. Improvements in infrastructure gained momentum and currently numerous road and freeway improvements are in the works to accommodate the growth. Aesthetic improvements have been made as well to various public spaces, along streets and highways. Of course, major sports are making their stamp on the city as well recently, leading to new venues being constructed. Development of multi family housing is in full swing as well, leading to numerous apartment communities and mid-rise buildings in the construction phase.
What is the difference in the local economy today compared to 10 years ago? It is the diversity we are seeing as far as the various types of companies and businesses making their mark on Las Vegas. This diversity leads to a more stable and healthy economy that everyone can benefit from. It will also lead to stronger and healthier home prices and rental values, which we have already begun to acquire a taste for.
With homes in high demand and selling fast , where's the rental market going? - Apr 19, 2017
April 2017 - The sales market has made news once again in Las Vegas - both with price appreciation and high demand. This is making it ever more challenging for first time home buyers and others to get into a place to call their own. Due to this buying frenzy, many will have to resort to renting. So, where is the rental market going?
Las Vegas has seen a resurgence in the rental market over the last few years. This has especially been seen since 2014, where year over year appreciation in rents has grown between 5-8% on average. In addition, with high demand existing for rentals, due to both an influx of new residents to the area and lack of supply, rents are continuing to progress upward. As of April 2017, approximately only 2000 properties were active on the rental market according to the Multiple Listing Service, which included Las Vegas, Henderson, and North Las Vegas. This small inventory for a city of 2.1 million is clearly showing a lack of supply.
As a result, rental rates are rising. As a matter of fact, out of the available inventory in April, only 300 properties were priced at $1000 / month or less. Just over 700 were priced between $1000-$1500 and the remaining 1000 were all priced above $1500. As this appreciation continues, renters will be feeling the pinch as well. For investors, this is good news. However, affordability will become a more prominent topic over the next few months and years. What factors will affect rents in the future?
The demand for housing will definitely play a role. This demand will be based on employment opportunities and desirability of the city, which is definitely moving forward. Las Vegas and the surrounding cities are attracting new corporations from a variety of backgrounds leading to many new commerical and industrial developments throughout the area. Major league sports are making their footprint as well, leading to a desirability to be around those. As this trend continues, we can expect the Las Vegas area to become even more desirable and as a result, more expensive.
Las Vegas Resale Inventory In Tight Supply - Mar 14, 2017
March 2017 - As the first quarter of 2017 comes to an end, the Las Vegas housing market has been experiencing a shortage of available real estate. With this short supply and demand on a continued rise, home prices have been appreciating steadily. Market conditions have proved challenging for first time home buyers and those on a tighter budget, with multiple offers competing for the available inventory. In addition, homes priced under $200,000 are in high demand, receiving the most activity and offers, making it especially competitive for those looking in that price range. The next price point in high demand is between $200-$300,000. Homes priced under $250,000 are experiencing much activity and multiple offers as well. The forecast for the remaining part of 2017 shows the market continuing to appreciate at a modest rate, especially if interest rates remain low, as they currently are.